♪ >> hello, and welcome to the "journal" on dw. i am richard walker. >> here is what is coming up. a game-changer. eurozone leaders listened to rule on the bailout funds, and the markets cheer on their flexibility. >> colorado burning, the state's worst wildfires raged on. fire crews a battle to contain the blaze. >> in the other euro battle, after being stopped yet again by those italians, germany licked their wounds. ♪ >> the process was tough, but
the outcome was dead. that was the verdict of italy's prime minister after more than 14 hours of talks at last night's euro summit. >> mario monti is being seen as the big winner of the night, along with his spanish counterpart mariano rajoy. they won big concessions from germany to help bring down borrowing costs. >> it will make it easier for them to tap into europe's rescue fund and enable the fund to shore up banks directly. >> that will be key to helping spain avoid being dragged down by teetering banks. >> after grueling negotiations, european leaders have a deal in place, and it is being hailed as a historical breakthrough. the agreement means italy and spain, groaning under unsustainable borrowing costs, will now have easier access to rescue fund money. >> the euro in the european project to the big winners of this summit. >> german chancellor angela
merkel also emerged satisfied, insisting she had not softened her stance. she says there was no need for additional instruments and controls and conditions remain in place. >> the high interest payments are not just a burden on government bonds but also for business. >> so there was an interest to find solutions. i saw my task is making sure those solutions comply with conditions that already exist. >> european council president says the deal will break the vicious circle. now the rescue fund can funnel money directly to struggling banks instead of piling debt on already stressed governments. that is the plan, the leaders were not ready to give specifics. >> look, i am not going out into
details. i slipped less than three hours, so i cannot now go into detail. >> chancellor merkel, meanwhile, immediately headed back to berlin to persuade the german bundestag to sign off on the european stability. >> some critics have been rounding on those decisions in brussels, saying they imagine eurobonds by the bank. is that fair? i put that question to our brussels correspondent. >> they are still two completely different things. the introduction of european bonds would have meant that every country has the euro as its currency could go to the markets and in many from their for the same interest rates, no conditions whatsoever, no matter just how likely it is and of the country is in a position to pay back the loan. no control. that is something germany was particularly against the the the new rules for the rescue funds, however, they said the countries can get money from the market's but only if a body such as the european commission has
examined that this country is actually in a position where it has fulfilled certain eu budgetary discipline and budgetary rules. otherwise, there will be no money. >> that was from brussels. >> there was no rest for angela merkel after that late night of+ wrangling in brussels. she flew right back to berlin for a major debate in parliament on the euro crisis. >> the bundestag is voting on both the eurozone's new rescue fund, the ees and, and a fiscal pact aimed at government -- cutting government debt. >> two-thirds of the majority is needed to ratify each of the bills. >> the atmosphere in the german parliament was tense in the lead up to the vote. chancellor merkel needed a two- thirds majority, which meant a lot of votes from the opposition to approve the fiscal pact on budget discipline and the new eurozone bailout fund, the esm. many lawmakers are concerned about the eu's decisions, especially that the esm should be able to aiddirectly.
but angela merkel defended the brussels accord. she said funding recipients would be subject to strict and, long-term, that would help stabilize the euro. >> there is a legal connection here between sound policy and solidarity. that is a very important. we back the euro. we want it as our stable currency. we believe we can run our economy better with it, that our living standard will be higher, and that is why i am is seeking agreement from you all. >> while many in the opposition are wary of handing over more power to brussels, the general consensus in parliament is that the common currency must be saved. >> and voting has just begun after that debate. let's go to john who is following things from our parliamentary studios. is the government going to get its two-thirds majority?
>> i think that is very likely. i just returned from the chamber. and just to clear up a possible misunderstanding, because i think in the international media, this is often being and accurately reported. this debate, of course, the chamber today is not about the concessions that angela merkel made to spain and italy. it is about two international treaties that germany, of course, is signing off on. the fiscal pact and the esm treaty. and there was a sense in the chamber that these are momentous treaty iies because they indicae germany's solidarity on the one hand with its european partners, and on the other hand, it and its european partners commit themselves to this goal -- sustainable fiscal policies. there is virtually no mention in the debate of the concessions that angela merkel had made. >> yes, you're quite right to
point out that tonight's vote is about the esm and about the fiscal pact, but angela merkel has faced a lot of criticism, especially on her own side, about those concessions. how has she been justifying her position? >> she has not directly. she has been placing it in the context of these international agreements. the atmosphere in the bundestag has been a very serious one. it is unusual, actually, because in parliament there is usually a lot of parliamentary fighting back and fight -- back and forth, parliamentary parties fighting. there was a sense among all the parties, except with the small socialist left party that is a vehemently opposed to the treaties, but all the other parties, including both major opposition parties, are in favor. >> thank you very much for joining us from the parliamentary studios here in berlin. >> markets have jumped at the news coming from brussels the more direct access to the esm seemed to be the highlight of for more, let's turn to our
correspondent who sent us this report from the frankfurt stock exchange. >> a huge sigh of relief and the people here on the frankfurt floor. they looked at what the people in brussels decided at the summit and said, boy, that is a conference of package. that is bound to bring euro land along. especially the fact that there is more direct access to the esm please people here. share price gains across the board, financial shares gaining an impressively. the dax itself with a jump as high as it has not seen in a very, very long time. even spanish and italian government debt profited. people are skeptical though that this might not last too long. after all, the core problem, highs sovereign debt, was not being addressed at the moment. people may be are looking to the ecb, the european central bank, to give further aid next week with an interest rate cut. >> let's have a closer look as some of the latest market numbers. we begin in frankfurt were the blue-chip dax index closed over
4 the sun up. euro stoxx 50 ended the day almost 5% up. across the atlantic, the dow jones is currently going up almost 2%. and the euro is trading for $1.2658. >> on to other news. egypt's new president has made a dramatic visit to tahrir square in cairo. that is the birthplace of the revolution. >> mohammed morsi cantu tahrir square to make it clear where his loyalties lie, to the egyptian people and not the all- powerful army. >> morsi supporters have been gathering all day in tahrir square, waiting for more slogans against the military. they were not disappointed. pres.-elect mohammed morsi took a symbolic but defiant oath of office. the official ceremony is scheduled for saturday. >> men of the revolution, freak
people of egypt, i have come to you today -- free people of egypt, i have come to you today to tell you i am absolutely convinced that you are the source of power. you and you alone are the source of power. >> that is a warning to the country's ruling military council which recently curtailed the president's powers of office. and it played to the crowd which wants to see the back of the military. >> mr. president, i ask you to complete purge all the institutions of state. we're supporting you. do not be afraid. we're all behind you. do not be afraid of anyone. just take care of the people. take care of the poor. take care of the slum-dwellers. >> morsi's gesture sets the stage for confrontation with the generals. the incoming president is
demanding the powers he was elected to hold. >> and the u.s., the first casualty of colorado's wildfires has been reported, and another person is missing. >> in the past days, firefighters have been struggling to contain the blaze which is now encroaching on the disk -- a densely populated area of colorado springs. >> president obama has declared a situation a major disaster. that clears the way for federal aid. >> a neighborhood up in flames on the edge of colorado springs. the explosive the blaze has already consumed more than 340 homes. the fires first casualty was reported on friday. >> the search continues. we have informed family members. initial information was that two adults were missing from that residents. >> more than 35,000 residents have been evacuated and found refuge in shelters, with family or friends. some will be able to return. >> we are exchanging ideas on
whether we rebuild insurance coverage issues, with our plans are. >> the fire broke out six days ago amid record highs in the state. calmer winds and lower temperatures helped firefighters gained new ground on thursday. >> we made significant progress today on the west side and the northwest side here. we were actually able to get firefighters on the ground today. >> president obama is traveling to colorado springs to meet with response teams and toward the ravaged area. he has already issued a disaster declaration and released federal funds to help the state. >> in germany, members of a committee investigating a neo- nazi murder ring have learned that authorities apparently shredded documents relevant to the case. >> the committee is trying to
work out whether or not that was an accident. the allegations add to an embarrassing scandal of the security services handling of the neo-nazi threat. >> the scandal erupted last november. >> german lawmakers are outraged. a committee investigating the knee and not see murdering has learned that the office for the protection of the constitution destroyed relevant documents just one week after the scandal broke. a document that has recently come to light seems to indicate that the field office routinely shredded documents. >> our confidence that we're being given accurate information is deeply shaken. >> i am worried that security agency's task with protecting the constitution or trying to cover up their mistakes. that is why i am calling for the interior minister to investigate from top to bottom. >> the head of germany's criminal police agency has been instructed to investigate these latest allegations.
he admits that mistakes were made, but he says that his agency is not to blame. >> we should have created a unit devoted to monitoring germany's right wing seen earlier. that is what i meant when i said the security agencies have failed. >> thursday's five-hour hearing centered around the federal criminal agencies mistakes. he said he did not agree with their findings. the committee members were perplexed. >> 10 murders, two bomb attacks, and 14 bank robberies going and all, i think we can conclude that something is not working. i would like to put it so bluntly that he has lost touch with reality. >> the difficult questions are said to continue next week when the head of the german office for the protection of the constitution sets for the committee. >> much more to come here on dw's "journal." we are going to look at how eurozone's new rescue fund is actually meant to work. >> and we're going to look a direction from the german team
after their defeat yesterday and what the german coaches said. stick around. ♪ >> unimpeded access to education and knowledge and the same opportunities for everyone. a central goal of the global community, but what is the reality on the ground? education for all -- and dw pose a multimedia special relates
personal stories and highlights extraordinary projects the world over. find out more on the internet. dw.de/educationforall. >> welcome back. facing pressure from italy and spain, eu leaders agreed to european stability mechanism can be tapped to recapitalize banks without having to go through governments. the rescue fund will be easier to access for crisis-hit countries, too. >> with those decisions made in brussels over the last two days, the eu hopes to regain investor confidence. the outcome did bring some immediate relief to italy and spain. >> in madrid on friday morning, interest rates on sovereign bonds started to fall in response to the news that it should become easier for spain and italy to get aid funds. the risk premium investors demand had been rising for months in both countries. interest on spain's 10-year bonds was close to 7%, and 6.2%
on italy's. the two countries see the summit as a success and now hope they will be able to raise money on the markets more cheaply. >> we have done quite well at this summit with respect to solving our problems. spain cannot go on financing its debt at those interest rates anymore. >> country's in trouble are now said to get emergency loans without the imposition of further austerity measures beyond those already agreed upon. >> so, the news from brussels could be a big boost for madrid and for rahm, too. how will the esm function? >> we have this look at the workings of the eurozone's new rescue fund. >> [speaking foreign language]
>> sorry, that was supposed to explain how the esm works, but of course that was in the wrong language. >> a bilingual channel, after all. >> the steel made in germany has long been a mark of quality that is coveted around the world. >> but how about made in greece? since the debt crisis struck the country did of years ago, some citizens have been forced to come up with creative solutions to key businesses running. >> turns up, greece has quite a bit of marketing appeal. here is more. >> expanding the customer base is one way of combating the financial crisis. and it is a question of survival for this cosmetics company chief. the company is now trumpeting its greek roots in its marketing campaign for its creams and shampoos. she is hoping that her compatriots will consciously by her greek products. that is securing jobs.
and increasing number of greek companies are following the trend. >> people used to care for french or german products, anything seen as chic, even if it is expensive. i think that is partly to blame for the crisis we're now in. we did not produce enough ourselves. >> at the moment, greeks are hanging onto their money. the company's only chances to bring over customers from the competition. this shoemaker is trying to replace foreign imports. she could turn out 8000 pairs of shoes a day, the right now she only makes a fraction of that. she is running greece's last major shoe factory, but few consumers know that. >> people think our brand is an import, so we have shot a commercial with a small budget because of the crisis. and i have to said that the response after it was televised
was overwhelming. people want greek products. >> she has already been able to bomb international names like procter and gamble from their number 1 spot in greece. but to make sure demand abroad increases, companies say the debt-leading countries will have to work hard. >> we have to create a new image for our country. admittedly, that is going to take quite an effort. but we can xl with the beauty of this country, with the people who are doing a good job. >> she is already exported to britain and japan. the women of greece are leading the way, but so far there are not enough companies following suit to make a major difference. >> a ministerial meeting of world powers still aimed at salvaging kofi annan's peace plan on the syrian crisis will go ahead on saturday in geneva. >> ahead of those talks, they're
still signs of division with reports that russia is resisting any efforts to impose a fiscal transition on its syrian allies. >> on the ground in syria, violence continues. suburbs of the capital are now a major flashpoint. >> once again, syria's civilians are paying the cost of continuing violence. these images were reportedly recorded in a northern damascus suburb which was the scene of most intense fighting in recent days. according to human-rights groups, at least 40 have been killed in government attacks. u.n. special envoy kofi annan hopes to present a new plan to end the violence at a meeting of the syrian action group on sunday. kofi annan's first plan fail to end the fighting. he remains optimistic his plan to create unity government between opposition and government forces could succeed. the leader of the u.n. observer mission in syria is also
hopeful. >> i sincerely hope that it will be possible to find good solutions for the coming days and coming months for the aspirations of the welfare of the syrian people. >> but despite his optimism, he and other u.n. observers were forced to pull out to do to the intensifying conflict. turkey is also watching the situation with growing concern and has been sending troops and equipment to areas along its border with syria. >> in other news, the chinese spacecraft is returned safely to earth after a 13-day voyage. >> and the landing was broadcast live on state television, china's first manned mission to the module, a model for future space station. they put the country's first woman into space. officials say all of the crew members are now in good health. all right, let's get to europe in 2012, and germany are
literally licking their wounds after last night. italy had been counting on reaching the final, but the italians had other ideas. >> low faced criticism over his choice of lineup and today accepted responsibilitinsisted l overall. >> germany's dream of the european title was left in tatters. once again, the squad was and crashing out of a major tournament, to the delight of the italian fans. germany started strongly. a first chance, but the opposing player appeared on the line. >> we could have taken a leave it there, but we missed our chance. then we conceded that unnecessary goal. >> that goal came in the 20th minute. mario balotelli give a perfect cross. italy exposed the vulnerable german defense, and balotelli was ruthlessly effective. germany tried to pay back the
deficit. ago here. but italy kept looking for one target, balotelli. one goal centum bearing down on the goal. it would be a match-winning performance from the 21-year- old. the german coach shook up his lineup at halftime, but philipp lahm passed up another strong chance. a free kick came dangerously close, but the cross bar kept the ball out. then a shimmer of hope when the fedor ego was called for handball. it was converted, but too little, too late. the final score, 2-1 for italy. >> we should not make the mistake now of over-analyzing. we played good tournament and had four victories. today, we lost. we will have to see how we can do better in the future. >> germany go home deeply disappointed them haven't been out-plane by a masterful italian side. >> from europe in 2012 back to
the eurozone crisis. we're now hearing that the bundestag and parliament here in berlin has passed, has voted in favor of the european stability mechanism to that vote has been going on in the past half hour or so. john joins us now from parliamentary studios. give us the latest. >> as expected, as we forecast on deutsche welle, in effect, angela merkel has got the two- thirds majority that she needed in the bundestag for the esm treaty. in now has to go to the second chamber of parliament, the chamber that represents the individual federal states of germany, but the parties have indicated there, too, the major german political parties, that they will vote in favor of the treaty. >> you have been watching the debate leading up to that. we heard an impassioned plea from angela merkel for support for her guidance. what are we hearing from the other side? >> it depends what you mean by
the other side of the most extreme other side is the small socialist left party. there, we had speaker after speaker saying that this was unconstitutional and promising that they will appeal to germany's constitutional court to overthrow the legislation. but one senior member of the party compared the legislation with the nazi's push against the constitution in 1933, and there was a storm of disgust in the chamber, one has to say. it was, interestingly enough, an opposition politician, a great politician, who was next in turn to speak, and he gave her a blistering condemnation and was greeted by applause in the house. i think one of the strong messages that comes from this debate for anybody who was sitting there and listening to is that germany, certainly the german parliament itself, is very parochial.
>> this debate came as angela merkel return from brussels, having made some quite significant concessions to italy and spain especially. there was some sniping from her own side. how much pressure is she going to come under now in the coming weeks and months over those concessions she has made? >> i think, mainly from the junior coalition partner, the business-friendly fdp, but there will not be too harsh because they do not want the government to collapse. >> ok. thank you very much for joining us from our parliamentary studios. and that is all we have time for. stay with us here on dw. >> see you soon. ♪ captioned by the national captioning institute --www.ncicap.org-- ♪